Summary
One of the biggest questions people ask as retirement gets closer is:
Do I have enough?
Enough to stop working.
Enough to live well.
Enough to feel confident about what comes next.
For most Australians, the answer will depend heavily on their Superannuation.
Yet many people don’t pay real attention to their super until retirement starts to feel close.
And when it does, the clock starts to feel louder.
Retirement is no longer a distant idea. It becomes real. And the decisions you make in the years leading up to it can have a meaningful impact on when you retire and how well you retire.
The good news is there are a number of ways to strengthen your super before you stop working.
Here are 8 strategies worth knowing.
1. Salary sacrifice
Salary sacrifice is one of the simplest and most effective ways to boost your super.
It allows you to contribute part of your pre-tax salary into super, which means those contributions are generally taxed at 15% instead of your marginal tax rate.
For many people, that creates an immediate tax advantage.
For example, if you earn $130,000 and salary sacrifice $15,000 into super, you may save around $2,500–$3,000 in tax compared to taking that money as salary (depending on your marginal tax rate).
That’s money staying invested for your future.
It’s simple. Automated. Efficient.
But there are two things people often miss:
First: if you get a pay rise, revisit yours alary sacrifice arrangement.
Many people set it once and forget it.
A higher income may create capacity to contribute more.
Second: concessional contribution caps changeover time.
If the annual cap increases and you don’t adjust, you may unintentionally underutilise the opportunity.
Small tweaks matter.
Especially when they compound.
2. Use catch-up concessional contributions
This is one of the most powerful, yet little known, super strategies.
If you haven’t fully used your concessional contribution cap in previous years (currently $30,000 pa), you maybe able to carry forward the unused portion and contribute more now.
This is known as catch-up concessional contributions.
But there’s an important rule:
Your total super balance must generally be under $500,000 at the previous 30 June to be eligible.
This strategy can be powerful if you’ve built up cash outside super.
That could include:
- savings in the ban
- money sitting in an offset account
- redraw available on your mortgage
- selling shares outside super
For example:
Let’s say you earn a salary of $220,000 and have $40,000 of unused concessional cap space and you contribute it to super.
That contribution will be tax-deductible, which could reduce your tax by around $12,800, while boosting your super at thesame time.
A rare win-win.
3. Make non-concessional contributions
Once you’ve maximised your concessional contributions, non-concessional contributions may be the next lever.
These are after-tax contributions – and the caps are much bigger. You have an annual cap of $120,000, which is effectively $240,000 for a couple.
They contributions don’t create an upfront tax deduction.
But they can still be very effective.
Why?
Because they move money into the super environment, where earnings are taxed more favourably than outside super.
This can make sense when you have money outside super from
- a tax refund
- an annual bonus
- an inheritance
- proceeds from selling an investment property
For someone approaching retirement, shifting money from a personal investment portfolio into super can improve long-term tax efficiency significantly.
In general, concessional contributions are usually the first place to start.
But once that space is used, non-concessional contributions can be a powerful second step.
4. Use thebring-forward rule
The bring-forward rule allows eligibleAustralians to contribute up to three years’ worth of non-concessional contributions in one hit.
This can be useful if you receive a large lump sum and want to move it into super quickly.
Examples:
- selling an investment property
- receiving an inheritance
- downsizing assets
- business sale proceeds
But there’s a catch.
Your eligibility and contribution limits are influenced by your Total Super Balance.
The higher your balance, the more your ability to use the bring-forward rule may be reduced or restricted.
This is where planning matters.
Because timing can be important.
A contribution made before your balance increases may preserve opportunities that disappear later.
The rules here can be technical, but the opportunity can be significant.
5. Start an account-based pension
Many people assume you need to fully retire before starting a pension from super.
That’s not always true.
If you’ve met a condition of release (after age 60), you may be able to start an account-based pension even if you’re still working.
Once super moves into pension phase (subject to transfer balance cap limits), investment earnings (income and capital gains) are generally tax-free.
Simple example
Superbalance: $1.1 million
Assumed annual earnings: 7%
Annual investment earnings:
$1,100,000× 7% = $77,000 per year
That’s the earnings your investments generate.
The question is:
How much tax would you pay on that if it wasn’t inside pension phase?
If those earnings were taxed at 15% (accumulation phase)
$77,000× 15% = $11,550 tax
In pension phase, that’s tax you don’t pay.
That’s meaningful.
6. Use a transition to retirement pension
Still trying to get your head around account- based pensions? Here’s another pension option worth knowing about: a transition to retirement (TTR) pension
This strategy is generally for people who want to reduce their working hours, and need to supplement the lost employment income with a pension from their super. However, in some circumstances you can use a TTR pension tactically to boost your super (yep, even when drawing from it).
The strategy is for those wanting to maximise concessional contributions in the lead up to retirement, but don’t have enough spare cash flow to do it.
Here’s how it can work:
- increase salary sacrifice into super
- reduce take-home pay
- replace that cash flow by drawing tax-free income from the TTR pension
This creates more room for tax-deductible super contributions without reducing your lifestyle cash flow.
For the right person, it can be a very effective pre-retirement strategy.
7. Keep or increase your growth assets in super
Many people become too conservative too early.
It’s understandable.
As retirement gets closer, protecting what you’ve built feels like the wise thing to do.
However, as we often explain to Verse clients, that even if retirement is only a few years away, growth assets like shares andproperty still deserve a meaningful place in your portfolio. Because, when you retire, you’re not going to sell everything and lump it in cash. You’ll likelyneed to maintain a healthy dose of growth assets throughout the duration of retirement – to combat the drawdowns you make the fund your retirement lifestyle.
Here’s some numbers to illustrate the value of investing for growth:
$500,000 growing at 8% for 10 years becomes around $1.08 million.
At 4%, it becomes around $740,000.
That’s roughly a $340,000 difference.
Same starting balance.
Different asset mix.
Different outcome.
Different retirement.
8. Reduce mortgage repayments and increase super contributions
This one isn’t for everyone.
But in the right circumstances, it can be very effective.
Many Australians focus heavily on paying down their mortgage as fast as possible.
And emotionally, that can feel safe.
But mathematically, it’s not always the best wealth-building decision.
In some cases, reducing extra mortgage repayments and redirecting that money into super can create a better long-term outcome.
Why?
Because
- super contributions may be tax deductible (hello, chunky tax refund)
- investment returns inside super often exceed your mortgage interest rate over time
- investment returns inside super often exceed your mortgage interest rate over time
Example:
If your mortgage rate is 6%, but your super portfolio is expected to earn 8–9% over the long term, and you receive tax benefits on the way in, the numbers may favour super.
But this strategy comes with trade-offs.
You’ll likely carry debt longer.
And that doesn’t suit everyone.
If having a larger mortgage for longer feels uncomfortable or even scary, it might not be the right strategy for you.
Final thoughts
Yes, the rules often change.
Yes, it can feel complex.
But, for most Australians, super remains the best way prepare for and fund the retirement you want.
Utilising these eight strategies, isn’t just about boosting your super balance.
It’s about boosting your future options.
More flexibility.
More confidence.
More freedom.
And isn’t that what we all want in retirement?
